By Virginia Muwanigwa – SANF 04 no 53
Globalisation can and must change, says a report entitled A Fair Globalisation: Creating Opportunities for All produced by the World Commission on the Social Dimension of Globalisation.
The Commission is an independent body formed by the International Labour Organisation (ILO) in 2002 to explore innovative and sustainable ways to transform globalisation and ensure it incorporates economic, social and environmental objectives and to benefit people in all countries.
Presenting the report to the ILO 92nd International Labour Conference in Geneva on 7 June, President Benjamin Mkapa of Tanzania, co-chair of the Commission, said the power asymmetry, lack of voice for the majority, inequalities and unfairness that are seemingly embedded in the current global governance system fuel anti-globalisation movements.
The report notes that global markets have grown rapidly without the parallel development of economic and social institutions necessary for their smooth and effective functioning and only a dozen developing countries have thus benefited.
The concept of open market systems in global trade under the World Trade Organisation (WTO) and global asymmetry of power symbolised by the G8 are increasingly being questioned.
The New Partnership for Africa’s Development (NEPAD), for example, warns that “The continued marginalisation of Africa from the globalisation process and the social exclusion of the vast majority of its peoples constitute a serious threat to global stability.”
Southern African Development Community (SADC) Executive Secretary, Prega Ramsamy, notes that while expansion of world trade, science and technology and movement of capital are positive outcomes, instability in financial and money markets, increasing unemployment, cultural intrusion, environmental degradation and widening gaps between the rich and the poor, are globalisation’s adverse effects.
“The major challenge facing all countries is to address both the positive and negative effects of globalisation. In this regard… regional integration is being utilised as a strategic tool and a stepping stone to effectively participate in the global economy,” he says.
Ramsamy states that in Africa, regional economic integration is seen as an important tool for peace and stability, effective participation in the global economy and for the creation of a wider economic space for not only foreign direct investment but also cross border and domestic investment.
SADC has thus restructured to enable it to effectively mobilise all stakeholders so the region can collectively capitalise on the opportunities presented by globalisation and to jointly mitigate against its negative effects.
However, the report notes that globalisation begins at the national level, where sound and stable policy frameworks are requisites for development. Such policies should be pro-poor and emphasise economic development with social protection.
A more effective state, capable of managing the process of integration into the global economy to guarantee social protection and to deliver on key social and economic goals through a social contract is thus recommended.
There is also a need for greater coherence between social and economic policies both at national and international level to ensure an integrated response to the problems arising from globalisation.
A consultative process in the form of national, regional and sub-regional dialogues across all continents provided the Commission with “unique and useful insights” that reflect global experiences, perspectives and ideas.
This consultative process captured the following recommendations among others:
- fairer trade agreements to improve developing countries access to Western markets;
- an agreement on a balanced framework for foreign direct investment to also benefit the developing countries;
- enforcement of labour laws and trade union rights especially in export processing zones; and
- better coordination among world institutions in ensuring that job creation drives economic policies.
A new approach to global governance and development which integrates people and countries into a collectively beneficial and growing global economy is recommended with nations urged to respect the needs and interests of others in domestic policies, especially those countries with greater decision-making powers in international bodies.
Global trade rules and policies must allow for policy autonomy in developing countries. “Existing rules that unduly restrict their policy options for accelerating agricultural growth and industrialisation, and for maintaining financial and economic stability, need to be reviewed,” states the report.
It also urges substantial reduction of unfair trade barriers for goods in which developing countries have a comparative advantage such as textiles, garments and agricultural products, in addition to special concessions to least developed countries to nurture their export potential.
The report notes that “we can correct the global governance deficit in the world today, ensure accountability and adopt coherent policies that forge a path for globalisation that is fair and just… or we can prevaricate and risk a slide into further spirals of insecurity, political turbulence, conflicts and wars.” (SARDC)
